Lawsuits against Ripple are actually good for Ripple (XRP) – Here’s why!

Lawsuits against Ripple are actually good for Ripple (XRP) – Here’s why!

In the recent past, Ripple (XRP) has been hit by a string of lawsuits, all arguing that ripple misrepresented XRP. The core argument in these cases is that Ripple (XRP) is a security. While investors are wary of these lawsuits, and many are holding off from investing in XRP, the lawsuits could actually be a blessing in disguise for XRP.

To understand why, it is important to know that the key factor holding ripple (XRP) back at this point is not whether it is a security or not, but the lack of clarity from the SEC on the status of this crypto. No serious investor wants to put their money in an asset that has an air of uncertainty hanging over it. This lack of clarity is not only counterproductive for investors, but also for the ripple (XRP) team as well. That’s because for them to push their objectives to the maximum, they need clarity on what exactly XRP is, it doesn’t matter whether it’s a security or not.

That’s where the lawsuits come into play. With these lawsuits, the SEC will be forced to work with fixed dates, in making their declaration on ripple (XRP). That’s because for the courts to make a decision on this issue, the SEC would have to come out clearly and make its stand known. In other words, ripple (XRP) would no longer be moving around in the dark, not knowing when the SEC will make its call. The game will change, and the news will change to countdowns towards the SEC’s day in court, to state their stand on XRP.

You are probably thinking, what if they are put on a fixed date, and they declare that XRP is indeed a security? Well, in such a scenario, the value of XRP would tank in the short-term. However, its long-term value would shoot up exponentially. That’s because it would now be traded by registered broker-dealers in the U.S broker dealers, dealers that control trillions of dollar in assets.

Think the like of the likes of Fidelity that controls over $5 trillion in assets. The entry of these players into a ‘security’ that is disrupting the banking industry would see one ripple share, trade in the thousands of dollars. It would be in the same league as the likes of Google and Amazon.

On the other hand, if the SEC were to declare that ripple (XRP) is not a security, the crypto community would be all over ripple (XRP). People would flock into XRP for the same reason that would drive volumes were to be declared a security, and that’s its utility value in banking.

As such, any rationale Ripple (XRP) should be happy with these lawsuits. Let the SEC be put on a deadline, and make its stand known about XRP. Holding it in a state of indecision is counterproductive but a decision, whatever it is, will be a win for investors. Time to watch this space.